Thursday, September 8, 2016

Maxwell Still Stuck In A Turbulent Transition

It's been practically a boilerplate warning in my prior articles on Maxwell (NASDAQ:MXWL) that this energy tech company's stock is likely to be very volatile as the company tries to cross the bridge between the Chinese hybrid bus and wind businesses that got it this far and the company's real future in applications like passenger autos, trucks, and perhaps rail and grid-scale utility markets.

With that, I'm not altogether surprised that there was a big downward revision after the last quarter and that the shares are down about 20% from the time of my last write-up.

Maxwell has frustrated a lot of investors for quite a while now, but I think there is one aspect to this story that isn't often discussed. While many energy tech companies have gone out of business because they couldn't continue to fund their large R&D needs while commercial partners tried out their technology, Maxwell has been able to use its China business to partially subsidize this extended R&D/field trial process.

Although success for Maxwell is by no means assured, companies like Continental (OTCPK:CTTAY), Valeo (OTCPK:VLEEY), and Volkswagen (OTCPK:VLKAY) are pushing on with increased electrification of passenger cars and that does represent at least a potential long-term opportunity for this electricity storage/delivery specialist.

Read more here:
Maxwell Still Stuck In A Turbulent Transition

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